On July 24, 2009, the federal minimum wage increases to $7.25 per hour, up from $6.55 per hour. This is the third step of a three-step increase to the minimum wage passed by Congress in 2007. Covered employers should already be posting the Department of Labor's notice of the incremental minimum wage increase.

Employers who are covered by both federal and state wage and hour laws, and/or who have employees who are covered by the laws, are required to pay employees the higher of the two rates. As Minnesota's current minimum wage rate is lower than the federal rate, the applicable minimum wage rate for most Minnesota employers will be the new federal minimum wage rate of $7.25 per hour. Many other states have minimum wage rates that meet or exceed the new federal rate.

More information is available at the Department of Labor's Web site: http://www.dol.gov/esa/whd/flsa.